A British exit from the European Union would be a catastrophe despite disagreements over capping banker bonuses that have left London increasingly isolated, German Finance Minister Wolfgang Schaeuble told an Austrian newspaper.

His comments are his strongest so far in trying to avoid a messy split that would send shock waves through politics and financial markets.

Britain failed this week to secure backing to water down new EU rules limiting bonuses, a measure that could threaten London's dominance as a financial centre.

Schaeuble acknowledged Britain's interest in the subject, given the major role its financial centre plays, but told Der Standard:

"I would prefer that the British could also agree, especially since I would not like the British to be driven out of the EU in the end. It is German policy that one does not support the voices that can imagine an EU without the UK."

He spoke of the damage such a move would inflict on the EU.

"Try then to explain to an Indonesian: Europe is an incredibly strong, dynamic entity but unfortunately not in a position to keep a globally oriented country like Britain as a member. This loss of reputation alone would be a catastrophe."

The rules, which would limit bankers' bonuses to the equivalent of their salary, or two times their salary if shareholders agree, are set to be introduced next year and would represent the toughest bonus regime anywhere in the world.

They threaten Britain's financial industry the most, raising the risk that some banks and their top bankers could relocate to other financial centres outside the European Union.

Schaeuble took a hard line in the interview, however, saying: "The regulations will not be weakened under any circumstances."

"I would prefer that the British could also agree, especially since I would not like the British to be driven out of the EU in the end. It is German policy that one does not support the voices that can imagine an EU without the UK." He spoke of the damage such a move would inflict on the EU... Schaeuble took a hard line in the interview, however, saying: "The regulations will not be weakened under any circumstances."

Oh, well, when you put it that way, it sounds so reasonable.

3
posted on 03/09/2013 6:16:27 AM PST
by SunkenCiv
(Romney would have been worse, if you're a dumb ass.)

If Britain were to leave the EU it would not be a catastrophe for either. However if Germany were to finally act in its own best intrests and leave the debt ridden and deficit spending addicted southern Europeans to their fates, then that would be a catastrophe for the EU. Eventually Germany will once again pivot its economic axis toward the boundless economic potential of Russia. Between 1870 and 1910 the German-Russian economic axis was the world’s most vibrant. Unfortunately the events of 1914-1945 and the subsequent cold war put an end to it. However a new central European power may become the primary counterbalance to the evolving Asian economic juggernaut.

...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.

US Imports of Crude oil

(1)

(2)

(3)

(4)

(5)

(6)

Year

Quantity (thousands of barrels)

Value (thousands of US dollars)

Unit price (US dollars)

Average daily US$ per € exchange rate

Unit price (euros)

2001

3,471,066

74,292,894

21.40

0.8952

23.91

2002

3,418,021

77,283,329

22.61

0.9454

23.92

2003

3,673,596

99,094,675

26.97

1.1321

23.82

We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.

As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.

10
posted on 03/09/2013 7:43:47 AM PST
by SunkenCiv
(Romney would have been worse, if you're a dumb ass.)

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